Bitcoin surged to an all-time high of $82,500 on Monday, driven by excitement over Donald Trump’s recent U.S. presidential victory and his pro-crypto stance. This spike comes amid increased investor interest in cryptocurrencies, with meme token Dogecoin also hitting a three-year peak.

Why Bitcoin and Cryptos are Soaring

Bitcoin’s rise is largely fuelled by expectations that the new administration will adopt more crypto-friendly policies. Trump’s campaign promise to make the U.S. the “crypto capital of the world” has sparked fresh enthusiasm among investors, who now anticipate a more supportive regulatory environment. Many are betting that the Securities and Exchange Commission (SEC) may ease its stance on crypto, potentially giving the market more legitimacy as a viable investment.

Record Inflows into Crypto Investment Funds

Investor optimism is clearly reflected in recent crypto fund inflows. Last week, Bitcoin exchange-traded funds (ETFs) saw record investments, with $1.38 billion flowing into these products on Thursday alone. BlackRock’s iShares Bitcoin Trust (NASDAQ

) captured a significant portion of these funds, even surpassing BlackRock’s own gold ETF in total assets. The rise of Bitcoin ETFs in U.S. markets has helped boost institutional interest, which in turn has contributed to the current rally.

So far in 2024, Bitcoin has gained around 91%, showcasing strong growth amid increased mainstream adoption and institutional interest.

Bernstein’s Bullish Outlook: “Buy Everything You Can”

Financial analysts at Bernstein are calling this the beginning of a new bull market for crypto, advising investors to “buy everything you can.” Their team, led by Gautam Chhugani, expects Trump’s administration to establish a pro-crypto SEC, with key members of his transition team already openly supporting crypto. Bernstein analysts remain confident in their Bitcoin price target of $200,000 by 2025, highlighting Trump’s proposal for a national Bitcoin reserve as a major potential driver.

A Boost for Bitcoin Miners and AI-Driven Mining Companies

The latest Bitcoin surge is especially good news for publicly traded Bitcoin miners, who are now enjoying higher profits with Bitcoin prices well above production costs. The rally also benefits AI-driven mining companies that use technology to enhance efficiency and profitability in the mining process.

Mixed Day for Altcoins, but DOGE Shines

While Bitcoin continues to rise, broader crypto markets have shown mixed results. However, Dogecoin stands out, hitting its highest level in three years, fuelled by the broader wave of crypto enthusiasm.

What’s Next?

With Trump’s victory signalling a shift towards potentially favourable policies for crypto, Bitcoin’s record-breaking rally could just be the beginning. As institutional and retail investors alike take advantage of this optimism, all eyes are on Bitcoin’s next big move.

Source: (Investing.com)